Question

Photos Screerwhot (1png See all photos + Ad to O Search thare The following events occurred for Favata Company a. Received $20.000 cash from owners and issued stock to them. b. Borrowed $17,000 cash from a bank and signed a note due later this year. c. Bought and received $1,800 of equipment on account. d. Purchased land for $32,000: paid $3,000 in cash and signed a long-term note for $29,000. e. Purchased $13,000 of equipment; paid $3,000 in cash and charged the rest on account. Required: For each of the events (a)through (e), perform transactilon analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Event Assets Liabilities Stockholders' Equity 8. b. C. d.

Answer 1

Answer-1:

Assets Event Liabilities Notes . payable-ST *lland Account payable * Notes payable-LT Equity Common Stock $ 20,000 Icash $ 20,000 17,000 Equipment 17,000 18,000 18,000 29,000 e. Total (3,000) (3,000)| $ 31,000 32,000 | $ 32,000 | 13,000 | $ 31,000 10,000 $ 28,000 $ 17,000 $ 29,000 $ 20,000

Answer-2:

General Journal Account Titles Date Credit Debit 15,000 Cash Common stock 15,000 12,000 Cash Notes payable-short term 12,000 1,300 Equipment Account payable 1,300 22,000 Land Cash Notes payable-long term 2,000 20,000 8,000 Equipment Account payable Cash 6,000 2,000